U.S. - Colombia Trade Promotion Agreement

Better Trade practices

A new proposal is on the books to officially adopt the current better trade promotion agreement that exists between the United States and Colombia, the U.S.-Colombia Trade Promotion Agreement. There remains a domestic debate from United States companies, who point out that American exporters have faced more than $1.1 billion in taxes in less than two years. It is estimated that about $2 million in taxes are placed on American goods sent to Colombia every day.

Supporters of the new plan say the Colombian business that ship goods to the United States have paid almost nothing for the right to export their goods. They say more than 91 percent of Colombian exports enter the United State without requiring any duty. U.S. exports to Colombia face an average tariff that exceeds 11 percent, not exactly a better trade.

The U.S. Congress signed the U.S.-Colombia Trade Promotion Agreement in November 2006. It was pitched as an opportunity to give American companies improved access to the strong Colombian market and improve the better trades climate in Columbia.

Colombia was already a strong trading partner with the United States and offered positive economic opportunities for American manufacturers, workers and farmers. The Trade Promotion Agreement was designed to help make Colombia a better place to do business. U.S. exports to Colombia grew 28 percent to $8.5 billion in 2007 and Colombia now ranks as the 26th largest export market for American goods.

The U.S. Department of Commerce said the agreement has been beneficial to Colombia. It cites the reduction of violence (homicides are down 40 percent over the last five years) and almost 10,000 individuals (one-fifth of them union members) are benefiting from Colombia's Protection Program. The Colombian government increased the budget for the office of its prosecutor general by $40 million for 2008, with half of the total going to help fund the Justice and Peach and Human Rights Units in pursuit of justice for victims of violence.

The agreement wasn't expected to be a sure-thing. Many U.S. Senators, including Maine's Olympia Snow, are concerned that the Colombian government is not moving quickly enough to combat the violence against trade unionists.